Masengere (Administrator of the Estate of the late Yozefat K. Lubega & 5 Others v Kinene & 3 Others (Miscellaneous Application 2494 of 2024)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
Application dismissed. Non-parties to a consent judgment cannot enforce its terms. Applicants failed to establish locus standi as they did not prove transmission of shares from deceased shareholders of the company or changes to the register of members. The application improperly sought to enforce a consent to which applicants were not party and to draw the court into the internal management of a company. Proper remedy lies under the Companies Act against the company itself.
Outcome
Application dismissed for lack of locus standi and improper cause of action
Facts
The applicants are beneficiaries and administrators of estates of deceased shareholders in Lukuli Coffee Factory Limited. The company owned land comprised in Kyadondo Block 261 Plot 152 at Lukuli, which was subject to Civil Suit No. 305 of 2024 against one shareholder. That suit was settled by consent judgment on 10 July 2024, providing for the land to be sold and proceeds distributed to shareholders according to their shareholding. The property was sold to the 4th respondent for consideration including UGX 800,000,000 already paid, with a balance of UGX 234,000,000 outstanding. The applicants alleged that the 1st and 2nd respondents opened a joint personal account to receive the proceeds, and that the applicants received only UGX 10,000,000 as interim payment. The applicants brought this application seeking orders for submission of a distribution scheme, accounting for proceeds received, payment of monies due to their estates, and direction that the balance be paid to them rather than to the respondents' joint account. The applicants were not parties to the original suit or consent judgment.
Issues
- Whether the application is properly brought before this court?
- Whether the applicants have the locus standi to bring the instant application?
- What remedies are available to the parties?
Orders
- Application dismissed.
- No orders as to costs.
Rules and key headnotes
Legislation cited (7)
- Civil Procedure Act s.98
- Judicature Act s.37
- Judicature Act s.43(2)
- Civil Procedure Rules O.52 r.1
- Civil Procedure Rules O.52 r.3
- Succession Act s.21
- Civil Procedure Rules O.25 r.6
Cases cited (3)
- Anecho Haruna Musa vs Twalib Noah and 2 ors before Justice Stephen Mubiru
- Olara Denis Micheal v Omony Stephen (Miscellaneous Application No. 01 of 2022)
- Betuco (U) Ltd and Another v Barclays Bank and Others (High Court Miscellaneous Application No. 243 of 2009)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.